Just yesterday a guy wrote to me, asking for advice on where to buy a property. He’s traveling this year to Ecuador, Uruguay, Panama, and Colombia, and wanted to know which one I favored for his list of requirements.
I started to look at his criteria, when something dawned on me: Only one of those countries is trading at a discount because of the U.S. dollar’s strength.
Dollar-priced properties are high right now on the world market, and Ecuador, Uruguay, and Panama all price their properties in U.S. dollars. If you buy a property in dollars, you’re ignoring the huge discount today in the nondollar markets.
Don’t get me wrong, a dollar-priced property may be the best fit for your individual circumstances. If so, don’t fret about currencies.
But my advice is this: Don’t invest in a dollar-based market today until you’re sure one of the discounted markets won’t do.
Some Markets Are Trading At A 50% Discount To 2010
I spent part of this morning looking back at historic exchange rates for some of my favorite markets.
The dollar began rising dramatically against many currencies in mid-2014, and it hasn’t slowed down.
Although the most dramatic gains have been over the past year, if we look back to 2010, we see that the gains are even bigger. For example, Brazil is trading at a 51% discount when compared to Continue reading